The astute observer will see the warning signs of a deteriorating economy by surveying the current financial markets. In my history of studying the US economy, this is the worst situation I have yet to report about. Conditions worsen while the sideshow stock market rises in perfect bubble fashion.
The Lingering Shadow of Debt
The United States government’s debt has ballooned to a level where debt service payments devour an increasingly larger slice of the budget pie. Borrowing has entered an exponential phase to keep the engine running, a precarious situation that cannot persist indefinitely.
Interest on this debt, often reflected in the ten-year bond yield, has climbed and fallen repeatedly recently, hitting 5% and then being forced back down today at 4.42%.
Increases in yields may dampen heavy borrowing over time, signaling that even the government must pay a steep price for its past fiscal indiscretions. It’s a canary in our economic coal mine, singing quite an ominous tune.
The Federal Reserve Money Supply has taken a dip, an indicator of economic distress, while the velocity of money ratio is rising.
This acceleration in money velocity raises concerns as it traditionally correlates with inflation. Indeed, inflation rates continue to move upward, stressing the already strained wallets of average Americans.
A dollar today, unfortunately, does not buy nearly the same amount of goods or the same level of security it once guaranteed.
The Case for Precious Metals
Gold and silver are not merely commodities but are millennia-old value stores. In the current context, their importance cannot be overstated.
Let’s look at the numbers: gold is trading at a spot price of $2392.86, and silver, the modest cousin to the yellow metal, is at $31.313 per ounce.
These figures reflect an acute collective anxiety about the dollar’s future purchase power. Historically, when irresponsible monetary policies challenge fiat currencies, precious metals shine the brightest.
Platinum and palladium should also not be overlooked. Their current prices, $1042.55 and $1005.286, respectively, indicate that these metals are also playing a role in wealth preservation, albeit with more industrial overtones.
Exiting the Paper Currency System
It is imperative now, more than ever, to diversify one’s assets to hedge against a steep decline in the value of paper currencies. The sad reality is that our economic system has been strained to the brink by a combination of market manipulation, artificial interest rates, and unfettered currency creation.
The health and solvency of our economy are being compromised for future generations.
The Role of Precious Metals in Wealth Preservation
Individuals should consider accumulating physical gold, silver, and even pre-1964 junk silver coins. Such assets have historically acted as insurance against the debasement of paper money and the vicissitudes of governmental prudence.
Many may find a sense of financial sanctuary by taking possession of such tangible assets.
A Call for Preparedness
The genuine survivalist will tell you that preparation is critical. In the context of a potential economic meltdown precipitated by the collapse of the US debt markets and consequent liquidity crisis, it becomes a matter of urgency.
A diversified survival kit should contain physical precious metals, non-perishable food, essential medical supplies, and alternative currencies such as Bitcoin (currently at a staggering $70151.44).
Monitoring the Energy Sector
US Crude Oil prices are currently at $78.05. While crude oil doesn’t shimmer like gold, its price is a significant indicator of future economic health and should not be underestimated. It’s intertwined with geopolitical stability and the robustness of industry.
The Influence of Political Maneuvering
Our economic plight is not purely a natural phenomenon but rather one augmented by the interference of non-market forces. Political leverage over our economy’s mechanisms creates distortions that often lead to non-reality-based outcomes.
An economy with overt regulations, cronyism, and financial engineering skews the fundamental principles of supply and demand.
In conclusion, the narratives of both financial markets and political chess moves echo through global economies, painting a picture that grows ever more complex. Comprehending these nuances and preparing accordingly may not just be a prudent choice—it may very well be the only option left to those seeking to preserve their wealth and secure their future amidst economic calamity.
In the spirit of due diligence and preservation, I urge readers to prepare, act cautiously, and consider precious metals as a lifeboat in the troubled waters we navigate. The integrity of your financial future may depend on the steps you take today.
Be not deceived – be prepared ~ Silver Savior
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* Note: We are not giving advice; we only give our opinion; we are not financial advisors. This article only represents our thoughts about the economy.
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